🧵 1/3: SEC votes to increase oversight of hedge funds and prop trading firms that regularly trade US Treasuries, labeling them as dealers. This will bring more compliance costs and scrutiny. #finance
🧵 1/3: SEC votes to increase oversight of hedge funds and prop trading firms that regularly trade US Treasuries, labeling them as dealers. This will bring more compliance costs and scrutiny. #finance
🧵 2/3: Potential collapse of basis trade, used to digest massive debt supply, could lead to unexpected consequences in Treasury market liquidity.
🧵 3/3: New regulations may force dozens of firms to register as dealers, but they are unlikely to comply. Regulators seek more insight into books of hedge funds involved in basis trade.
🧵 Read more at: https://www.zerohedge.com/markets/sec-cracks-down-basis-trades-will-force-top-hedge-funds-register-dealers-resulting